The House of Representatives Joint Committee on Midstream and Downstream has said that the allegation of non-availability and non-supply of crude oil to domestic refineries in Nigeria raises concern about the quality of fuel in Nigerian markets.
Chairman of the joint Committee of the House, Ikenga Imo Ugochinyere, disclosed this to newsmen in Abuja.
The joint committee is investigating the allegation of production and importation of substandard fuel products and non-supply of crude to domestic refineries.
Investigations underway
The development comes days after the Chief Executive Officer, Dangote Refinery, Aliko Dangote, reacted to the allegations by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that his refinery is producing products of low quality.
The committee has the instruction of the House to commence a forensic investigation into the challenges facing the downstream and midstream petroleum sector.
Ugochinyere said while the non-supply of crude oil to local refineries is a concern, the committee will take a closer look at the integrity of the testing processes for petroleum products in the country, particularly focusing on the capacity and credibility of all the testing laboratories of all stakeholders in the downstream midstream value chain including local middlemen and the laboratories they employ.
“We are firstly addressing allegations concerning the importation of substandard petroleum products and the non-availability of crude oil to domestic refineries, which has raised serious concerns about the quality and safety of fuel in our market.
“The committee will conduct a legislative forensic investigation into the presence of middlemen in crude trading, indiscriminate issuance of licences and alleged unavailability of international standard laboratories to check adulterated products,” he said, Daily Trust reports.
The lawmaker added that relevant stakeholders will be invited to answer questions regarding the alleged availability of substandard products.
He added,
“So in view of the above, the joint committee resolved that both parties in the raging argument; Dangote Refinery, other refining companies, NMDPRA, marketers and relevant stakeholders should henceforth cease further allegations and counter-allegations pending the conclusion and outcome of the investigation.
“Letters of invitation will be dispatched today for submissions of relevant documents and appearances to key stakeholders, regulatory bodies, State Oil Companies, Petroleum Products Refining Companies, IPMAN, PETROAN, independent oil producers, international oil companies (IOCs), importers, marketers, depot owners and other stakeholders too numerous to mention”.
What you should know
Dangote had challenged regulators, including the NMDPRA, to come to the refinery and examine the quality of their products.
The African richest man noted that while other filling stations have flashpoints as low as 26, their products maintain a flashpoint of 96.
His refinery in Lagos also disclosed that it’s in discussions with Libya to import crude oil for its 650,000 barrels per day plant as it increases production, implying a shortage of supply from Nigeria’s regulators.
Backstory
Earlier, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) alleged that the Dangote Refinery was producing inferior products compared to imported ones.
Farouk Ahmed, the head of NMDPRA, made this claim, stating that the quality of diesel produced by Dangote was 665 ppm, which he considered inferior.
Ahmed’s statement sparked a significant public backlash. Many people found his remarks unacceptable, arguing that they undermined a major local industry and did not reflect the true quality of the refinery’s products.
In response, Dangote has invited regulators to test their products. The company said that they are producing better quality products than most filling stations across Nigeria, confidently standing by the superior quality of their output.
